The Election Results and Property Market – comment by David Grundy

On the election outcome, CEO of My Online Estate Agent, David Grundy, said: “Since the election last week, there has been a definite surge in confidence in the air. Here at My Online Estate Agent, we have seen an influx of instructions post-election as people have been waiting to see the outcome before putting their house on the market.

“In fact the week prior to the election, our instructions were noticeably down, but in the four days since we have seen a noticeable surge, 25% up on a typical weekend period. People who were holding off to see if we would end up with a hung parliament, are now taking the plunge to put their properties on the market and for good reason.

“Any uncertainty has gone and with that has come more confidence to sell. There are lots of buyers out there and I would say if you are thinking about it, now is the time to get your property up for sale in the run up to the busy Summer period. Prices are strong, there are a lot of buyers, and there is time to generate real interest before the traditional Summer slowdown.”

Grundy believes that to see real momentum return, the new government needs to introduce tailored schemes aimed at specific groups of buyers. He said: “Trying to rely on a ‘one size fits all’ generic approach has had very little impact on the overall housing market. To achieve real results we need to start targeting the people who have the potential to really drive things forward.”

MOEA is one of the UK’s leading and most established independent, online estate agencies – offering both Sales and Lettings services to property owners and landlords across the country.

ENDS

NOTES TO EDITORS:

MOEA is one of the UK’s leading and most established independent, online estate agencies – offering both Sales and Lettings services to property owners and landlords across the country.

It offers the same services offered by a typical high street estate agent, at a fraction of the cost and without compromising on reach – MOEA properties are advertised on all the major portals such as Rightmove and Zoopla.

The significantly lower prices are deliverable as the business does not have expensive property and ancillary costs. In addition, a focus on the use of technology allows operations to be delivered in a more efficient manner. Despite operating on a national basis, a country-wide network of property assessors ensures Sales instructions receive a local service.

Ten Top Tips For Buying Property With Friends

The number of first-time buyers hoping to boost their purchasing power by joining forces with a friend is on the up. In fact, our recent survey showed nearly one in five of us (18%) are considering buddying up to get on the property ladder.

Rising house prices and the need for large deposits are behind this sudden surge as more and more people find it difficult, if not impossible, to purchase property alone. But, as with anything there are important pros and cons to consider.

Here, CEO of My Online Estate Agent, David Grundy, shares his ten top tips on what you need to consider before deciding whether to buy property with a friend:

1) Try renting property together first

It is a good idea to try renting together first, for at least a period of six months, to make sure you and your friend are compatible living partners – after all you never truly know somebody until you’ve lived with them. If the trial works well you can both go into the commitment confident your joint ownership won’t end bitterly or affect your friendship.

2) Agree the basics from the beginning

Engage in frank and honest discussions before anything is confirmed. Important agreements you need to make in advance include the location you are looking to buy in, the price you are willing to stretch to, and how long you are planning to live together. Agreeing these points up front will make the process of finding, buying, and owning a property together much easier.

3) Have an open discussion about your financial affairs

Honesty is the best policy when looking to enter into joint ownership. All parties involved are responsible for mortgage payments, so be up front about your financial situation. If one person defaults on their share of the mortgage payments, you could also be liable and it could affect your credit rating in the long run. Be sure you both check your credit history before moving in as this could affect your plans. A poor credit score can impact on meeting collective mortgage requirements, which in turn could result in a joint application being refused by a lender.

4) Draw up official documentation

Don’t forget no matter how close you are as friends, buying a house is a business transaction that requires an intense and long-term financial commitment. Only purchase the property once you have the right legal documentation drawn up by a solicitor. This may include a declaration of trust or co-habitation agreement outlining both of your rights and obligations.

5) Consider a joint bank account

Setting up a joint bank account could have many benefits and will make the process of making mortgage payments, as well as other shared expenses, much easier. It will also help you keep track of all your outgoing payments and expenses. Don’t forget to keep adequate records of everything, from how much you each put into the deposit to what you’re individually paying each month, this will guarantee greater protection for both of you in the long-term.

If you are both putting in different amounts to the deposit and upkeep of the house you will need to work out the proportion each equates too, so you know how the proceeds should be split should you have to sell the property.

6) Be prepared for the worst

Prepare for the unexpected to make sure your venture doesn’t come to a bitter end. Unpredictable events, such as one of you being unable to make payments due to a job loss, or one of you wanting to sell up and move on while the other wants to stay can create problems. Consult lawyers about a co-ownership contract in advance, where it is outlined and agreed exactly what should happen if there are any problems down the line.

7) Agree house rules

Make sure you set out the house rules from the start. Discuss and agree everything from whether partners are allowed to stay overnight, to whether pets and smoking are allowed in the property. One of you might be a night owl or party animal, make sure you talk upfront from the beginning about what house behaviour is acceptable and what could potentially cause problems further down the line.

8) Protect your assets

As you are both likely to be bringing your personal belongings into the property it is advised to get an inventory. Outline which items are personally owned and which are shared and agree how to split communal items should either on you decide to move on.

9) Think your options through thoroughly

There are different ways to jointly own a property, which will have different effects should one person wish to move on. Owning the property as joint tenants means the property belongs to you and your friend jointly, so you cannot re-mortgage or sell the property without the other’s permission. However, owning the property as tenants in common, whilst still meaning you own the property together, also means you own individually a specific share of its value which you can give away, sell, or mortgage.

Always go into the investment with eyes wide open. Lenders are now offering an ever increasing number of products targeted at joint mortgages, or mortgages designed specifically for co-owners. Seeking independent financial advice is a great way to make sure you have sight of everything currently on offer in the market will ensure you get the best deal for your individual circumstances.

10) See it as a long term investment

Think long term and select a property that will make a good future investment. If you decide to move on you can split the profits or alternatively you may wish to rent it out if you are unable to sell – so a spacious property in the right location will work well for you and your friend regardless of the future outcome.

When you are ready to move on it could mean you each make enough money from the sale to put down a deposit on your own house.

Click here to read more property advice from My Online Estate Agent.